/Lowe)
Valued at a market cap of $128.1 billion, Lowe's Companies, Inc. (LOW) is a leading home improvement retailer headquartered in Mooresville, North Carolina. The company offers a wide range of products for the construction, maintenance, repair, remodeling, and decorating of homes and commercial properties. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Wednesday, Aug. 20.
Ahead of this event, analysts expect this home improvement giant to report a profit of $4.25 per share, up 3.7% from $4.10 per share in the year-ago quarter. The company has topped Wall Street’s earnings estimates in each of the last four quarters. In Q1, LOW’s EPS of $2.92 outpaced the forecasted figure by 1.4%.
For fiscal 2025, analysts expect LOW to report a profit of $12.30 per share, up 2.5% from $12 per share in fiscal 2024. Furthermore, its EPS is expected to grow 9.2% year-over-year to $13.43 in fiscal 2026.
LOW has declined 4.1% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 14.5% gain and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.9% return over the same time frame.
On May 21, shares of LOW tumbled 1.7% after its Q1 earnings release, despite delivering a better-than-expected performance. Its revenue declined 2% year-over-year to $20.9 billion, but topped the consensus estimates by a slight margin. Moreover, on the earnings front, while its EPS of $2.92 fell 4.6% from the year-ago quarter, it surpassed the analyst expectations by 1.4%. However, its cash flow from operations also declined by a notable 20.7% from the same period last year to $3.4 billion, which might have weighed on investor confidence. Looking ahead to fiscal 2025, LOW expects total sales in the range of $83.5 billion to $84.5 billion, and projects EPS to be between $12.15 and $12.40.
Wall Street analysts are moderately optimistic about LOW’s stock, with an overall "Moderate Buy" rating. Among 30 analysts covering the stock, 20 recommend "Strong Buy," one indicates a "Moderate Buy," eight advise “Hold,” and one suggests a "Strong Sell” rating. The mean price target for LOW is $267.93, indicating a 17.2% premium from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
